ieg spring board development seminar why good governance matters, part 2 – postsecondary...
TRANSCRIPT
IEG Spring Board Development Seminar
Why Good Governance Matters, Part 2 –
Postsecondary Education’s Role as Stewards of Place
Doug Henton
President, Collaborative Economics
Monday, May 23, 2005
10:30 a.m.
Setting the Stage
What are the new realities? The realities facing everyone
Additional realities facing universities/colleges
What are the new requirements? New thinking about leadership
New thinking about university/college mission
What are the new opportunities? Benefits can be more widely shared
A new common ground is possible
The Challenge
Four regional conversations today Innovative Economy: how to succeed in
the new economy and ensure everyone participates
Livable Community: how to create communities where people want to live
Social Inclusion: how to ensure inclusive and equitable communities
Collaborative Governance : How to reform government to make it more responsive
Collaborative Economics, Inc
New Reality: Civic Leadership in Transition
Globalization of business changes the meaning of place
New technologies changes time and space
Changing demographics changes the profile of leadership
New reality: The anonymity of civic leadership
The Challenge: Finding Stewards of Place
Regional Stewardship: commitment to place
Traditional Leadership: commitment to an issue/cause
Stewards understand the interdependence between the economy, society, and environment
Regional stewardship is both an individual and a regional capacity
New Leadership Model
The Challenge
New expectations for university/college contributions to the regional economy—roles in all four conversations
New expectations that universities/colleges step forward as “stewards of place” as they are uniquely situated—embedded—with a sense of place
Entrepreneurs
Innovative Economy
Entrepreneurs
Framework for Regional Leadership:Innovative Economy
“The first 100 years of our country’s history were about who could build the biggest, most efficient
farm.
The second 100 years were about the race to build efficient factories.
The third 100 years are about ideas.”
-- Seth GodinFast Company, August 2000
The Evolving Economy
Paul Romer says ideas are the primary source of economic growth.
“Recipes (new ideas) combine ingredients (resources) in new and different ways to yield more valuable economic results.”
The recipes come from the innovation process.
New Growth Theory and Innovation
We know 3 very pertinent things:
Ideas require intelligent seeding;
Ideas that sit on the shelf are worthless. Ideas have to move, grow, and touch lots of people and businesses to provide benefits.
Universities/colleges, traditional sites of R&D and smart people, are certainly part of the equation.
How do Ideas Come About?
“What distinguishes Silicon Valley is not its scientific advances or technology breakthroughs.
Instead, its edge derives from a “habitat” or environment that is tuned to turning ideas into products and taking them rapidly to market by creating new firms.”
The Silicon Valley Edge
Habitat for Innovation and Entrepreneurship
Innovative Economy
Entrepreneurs
Livable Community
Environmental Community
Framework for Regional Leadership: Livable Community
Quality of Place Counts More Than Ever
More and more companies and skilled labor locate where they want---not where they must.
Ross DeVol, The Milkin Institute Review, 2002
More Complex Calculation for Quality of Place
•Natural environment counts for a lot.
•But natural features aren’t enough. Places must have distinctive urban amenities as well.
•Choice matters in the talent war.
•Being a smart, innovative place matters.
•It’s not just about physical attributes. Intangibles such as “hipness,” tolerance, and entrepreneurial culture are part of the calculation.
•Speed is a vital amenity.
Six defining characteristics:
Morrison Institute for Public Policy, 2003
Competitive Advantages Lie In Local Things
“The enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, motivation—that distant rivals cannot match.”
“This role of location has been long overlooked, despite striking evidence that innovation and competitive success in so many fields are geographically concentrated.”
Michael Porter
Innovation is Place Based
Most innovative work occurs in face-to-face exchange within teams.
Geographic clustering is a powerful mechanism for sharing personal knowledge.
The creative heart and soul of the economy will continue to be tied to place.
Place matters.
Social Inclusion
Neighborhoods
Innovative Economy
Entrepreneurs
Livable Community
Environmental Community
Framework for Regional Leadership: Social Inclusion
Creating an Inclusive Society
Education and training
Bridging the “digital divide”
Neighborhood improvement
Raising standard of living
Source of wealth
The single factor with the greatest power to explain differences in per capita income between states is the percentage of college graduates.
On average, a one-year increase in a metro area’s educational level raises wages by 3 to 5 percent.
Source: Milken Institute, 2002
Education Attainment
Less than 25% of population over 25 are college graduates
More than 25% of population over 25 are college graduates
Source: Census
Urban Revitalization
College and University leaders can:
Create an explicit urban ED strategy focused on the surrounding community
Include meaningful community participation and dialogue in formulating this strategy
Charge specific departments with explicit ED goals
Create a high-level coordinator to oversee/advance the effect
Deploy colleges/university leadership to serve on boards
Think long-term
CEOs for Cities: Wake-Up Call for Academia
Source: Leveraging Colleges and Universities for Urban Economic Revitalization.
University/College Role
Source: Leveraging Colleges and Universities for Urban Economic Revitalization.
Most Important Sources of Prosperity are Created
Created Assets
Top universities
Research centers
Entrepreneurial culture
Talented people
Vibrant downtowns
Networks
Inherited Assets
Geography
Climate
Population
The Challenge: Strategic, Sustained Civic Effort
Some of the most important “quality of place” advantages are not accidental but the result of combined strategic effort and sustained civic effort.
The new century will be a highly competitive one—especially as cities and regions realize that key features are “buildable” and thus can be had by nearly any place that puts its mind to it.
Austin: City of Ideas
Three decades ago: Sleepy University/Govt Town (per capita income 85% of US average)
Today one of 20 “Cities of Ideas” (per capita income is 107% of US average)
“Poised for Greatness”-- IT and quality of life
Attracts Motorola, AMD in 70s; MCC research consortium; SEMATECH- 13-firm research consortium; many IT- related firms follow
UT top 10 of engineering graduate schools (1989)
Multiple startups: Dell and spin offs from UT
Keep Austin Weird: convergence of creativity and technology
Collaborative Governance
Local Governments
Innovative Economy
Entrepreneurs
Livable Community
Environmental Community
Social Inclusion
Neighborhoods
Framework for Regional Leadership: Collaborative Governance
Challenge: New Responses Required
Most complex challenges today are regional in scale.
Traditional business, government and civic responses are not adequate
Boundary-crossing is now required
Few know how to engage in this kind of regional civic leadership
America’s Citistates
Universities/Colleges in the Knowledge Economy
The Challenge: New Responses Required
From Teaching to Learning
From Research to Innovation
From Service to Network
Overhaul University/College Pillars
From teaching to learning
Conveys message knowledge is critical
Elevates the overall role of life-long learning
Places learners at the center of decision-making
Recognizes highly-educated adults return to campus; creates a new dynamic of collective learning
The Learning Imperative
“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.”
Alvin Toffler
From Research to Innovation
Recognizes that innovation is key
Creates expectation that continuous innovation is the norm
Recognizes key ingredients for innovation are broader than research per se
Requires human, intellectual, financial and social capital—all part of university
Expertise Diversity
Interaction
Creativity
EXPERTISE means talented people
INTERACTION when people come together, there’s a better chance for the passionate exchange of ideas & synergies that create new business models, marketing plans or products
DIVERSITY is important in generating the “Next Big Thing”; people learn most by interacting with people less like themselves.
The EDI’s of Innovation
Mary Jo Waits, Morrison Institute
Tearing Down Walls
Telecommunications, biotech, software, the Web, great music, architecture, and
art.
“It’s at the intersections of disciplines where sparks fly.”
Alliances to Find the Next Big Thing
The company-owned research lab, that proud19th-century invention, has become obsolete.
Increasingly, development and growth is taking place not inside the corporation itself but through partnerships, joint ventures, alliances, etc with institutions in different industries and with a different technology.
The Economist, 2001
From service to engagement
Recognizes universities are the locus for multiple innovation “ingredients” (talent, interdisciplinary teams) for regions
Recognizes that barriers to innovation have been traditional “walls” that separate universities, industries and entrepreneurs
Recognizes the power of “tacit knowledge”
Innovation varies greatly across regions
Some regions have high levels of R&D investments and numerous specialized research centers, but still lag in terms of innovation output because knowledge is not effectively or rapidly transferred to companies.
Clusters of Innovation, 2001
New Economy is a Networked Economy
Then
Vertical integration
Large firms
Hierarchical relationships
Isolated firms
Stability
Now
Specialization
Medium & small firms
Horizontal relationships
Connected firms
Change
Collaborative Economics, Inc.
Business Geography by Product Maturity
Age of Product
Examples of Product
Location Priorities
Young New media: Internet product development; Web-site design
• Urban lifestyle • High face-to-face interaction • Availability of talent from multiple disciplines:
designers, computer technicians, advertising, telecommunications, etc.
Mature Small electronic goods manufacture, athletic shoes
• Low cost entry level labor • Low cost space • Affordable low-income housing
Source: Cohen, N. Business Location Decision-Making and the Cities: Bringing Companies Back, April 2000.
“Dipping-Down” Into the Pool of Knowledge
Faculty consulting most important reason they contact MIT/Universities
Followed by professional education, recruiting, joint R&D, and tech licensing
Similar views expressed in a survey of life science companies
Companies founded by MIT graduates say…
Culture of Engagement
“The Georgia Tech Culture, from president to academic unit, is pervasively oriented toward outreach and engagement with the external world.” Innovation U, 2002
Georgia Research Alliance; Economic Development Institute; Advanced Technology Development Centers
College and University Business Engagement Model
Source: Leveraging Colleges and Universities for Urban Economic Revitalization.
New Sweepstakes
The list of America’s top 50 universities will change profoundly in this century
based on 3 issues:
Location, programs, collaboration
Eugene Trani, President, VirginiaCommonwealth University
Summary
Communities—Four conversations
Higher Education—Plays in all four conversations and can help “connect the dots”
Changing Economy—Requires new responses and new leadership models
More Information
A new regional model of leadership is emerging based on collaboration and civic engagement
The new regionalism is not regional government
New models of innovative regional governance are growing
www.regionalstewardship.org
John Parr, President and CEO